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don’t have to deal with. And there’s also the simple idea


that American-made products are better made and safer. “That’s what a lot of customers


want,” Neeley said. “What Walmart found, especially, is that mothers prefer made-in-USA products over products made in China for their kids. They trust them more, and they know they’re safer and more durable.” So what does that mean for the


trucking industry? Nobody’s sure, but everybody’s hopeful. “Transportation is a key figure in


our investment, and as energy prices continue to increase we believe sourcing closer to the consumer is not only good for business but good for our custom- ers,” said Brooke Buchanan, a Walmart spokeswoman. “It’s early on in our U.S. Manufacturing commitment and the impact it will have on the trucking industry, but it is something we are very interested in.” Walmart has held two U.S. manu-


facturing summits — the most recent one in Denver in mid-August — bring- ing together hundreds of suppliers and government officials from 34 states. According to its website, Walmart’s reshoring initiative includes not just buying American-made products but collaborating with manufacturers, giv- ing long-range demand forecasts, mak- ing longer-term product commitments on basic goods, and helping connect manufacturers with resources that will help them make informed decisions about capital investments. These reshoring efforts are taking


place across the country, but Arkansas, especially, stands to benefit for two major reasons, Neeley said: Being home to Walmart, and being located in the middle of the country with access to major interstate routes. “It’s one of the best logistical loca-


tions in the country,” Neeley said. “Instead of transporting from Long Beach all across the country, plants can be centrally located here. It’s more effi- cient than shipping from one end of the country to the other.”


24


“IF THE PRODUCTS ARE BEING MADE HERE, THERE ARE


OPPORTUNITIES FOR AMERICAN TRUCKING COMPANIES TO BE PART OF GETTING


PRODUCTS TO MARKET MUCH QUICKER.


TIME TO MARKET IS EVERYTHING.


IT’S GOING TO GET


TRUCKING COMPANIES IN THAT INDUSTRY


MORE BUSINESS, AND IT’S GOING TO GIVE


THE OPPORTUNITY TO CREATE MORE JOBS…”


—CHRIS NEELEY,


EXEC. VICE PRESIDENT, MADE IN USA WORKS!


LOCATION, LOCATION, LOCATION Arkansas has a natural edge, Neeley


said, just by being home to Walmart’s corporate headquarters. “It’s the same reason Walmart


suppliers want to set up offices in Arkansas,” he said. “If you’re produc- ing that product here, you can take a Walmart buyer over to your production facility, and they can see how that prod- uct is produced and play a part in mak- ing the product better, more durable, safer and more consumer friendly. If a Walmart merchant is buying something made in China, they’ve got to travel all the way over there,” Neeley continued. Two companies — Redman and


Associates, which makes children’s ride-on toys, and Hanna’s Candles — have already announced expansions at their Arkansas production facilities. Redman owner Mel Redman retired from Walmart and set up his own busi- ness, Neeley said. He was the first after Walmart’s announcement to reshore. “That’s right here in our state


— he’s an Arkansan,” Neeley said. “Arkansas is already planting the flag on this thing.” Several more announce- ments are coming, he said. Second: To what extent reshoring


The time-to-market issue is increas-


ingly important, Neeley said. “In the internet world, retail is


all about speed,” Neeley said. “If the products are being made here, there are opportunities for American trucking companies to be part of getting prod- ucts to market much quicker. Time to market is everything. It’s going to get trucking companies in that industry more business, and it’s going to give the opportunity to create more jobs, and it’s going to give them the opportunity quite frankly to reduce some of their costs because of volume.” Just how much more business


Arkansas trucking companies see as a result of Walmart’s initiative depends on a number of factors.


manufacturers will use trucks to trans- port goods, rather than other forms of transportation — and, related, how much existing business trucking com- panies might lose if less cargo needs to be transported from ports to domestic destinations. “In some situations, the product


hits the port, they put the container on a stack train, and it gets delivered,” Crowell said. “How much of that doesn’t happen anymore?” Third: Whether companies will


need to move raw materials and parts from one domestic location to another before the product is fully assembled and taken to market. Increasing domestic manufactur-


ing isn’t an easy or quick process, and the supply chain infrastructure in the United States has been neglected for a


34 ARKANSAS TRUCKING REPORT | Issue 4 2014


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